Airbus Ruling

700UW

Corn Field
Nov 11, 2003
37,637
19,488
NC
October 1, 2004

Machinists Win US Airways Airbus Arbitration

The International Association of Machinists and Aerospace Workers (IAM) today
announced a major victory over US Airways in a year-long dispute over subcontracting heavy maintenance of the airline’s Airbus aircraft.

“The IAM more than a year ago told US Airways that our contract prohibited subcontracting this work,â€￾ said Robert Roach, Jr., IAM General Vice President of Transportation. “US Airways wasted countless dollars on attorneys to fight their employees, and is now financially liable to our members for their corporate arrogance. I urge US Airways to begin embracing their employees as valuable assets and listen to our ideas for addressing the substantial challenges facing the airline.â€￾

US Airways began illegally subcontracting Airbus Heavy Maintenance Visits (HMV) to Singapore Technologies Mobile Aerospace Engineering located in Mobile, Alabama in October 2003. The IAM won an immediate injunction in Federal District Court halting the subcontracting, but the Third Circuit Court of Appeals on February 3, 2004 lifted the injunction. The Appeals Court ruled the dispute should be resolved through the System Board of Adjustment, which is the arbitration mechanism provided for in the IAM-US Airways contract. The three-member System Board is made up of one Union member, one company member and a neutral.

“The Airbus was acquired by the Company in October of 1998 and the Company was, or should have been, well aware of maintenance obligations, particularly with respect to HMV work,â€￾ says the System Board of Adjustment’s decision. “If the Company is now faced with a bona fide dilemma, it is one that could have been, and to a certain extent was, recognized early on, but never accommodated in bargaining. The Company is ordered to cease and desist in outsourcing Airbus
HMV work.â€￾ ST Mobile Aerospace has completed twelve Airbus overhauls in violation of the IAM collective bargaining agreement.

The complete signed decision will be available at http://transportation.goiam.org when received from the arbitrator.

“This decision reaffirms 55 years of contract language,â€￾ said William O’Driscoll, President of IAM District 142. “US Airways illegally outsourced Airbus work just months after IAM members provided $1.5 billion in savings to rescue the airline and allow it to emerge from its first bankruptcy. US Airways’ actions severely damaged the labor-management relationship that is critical for the company’s success.â€￾

The parties have been ordered to meet and discuss how affected employees will be made whole for losses caused by the airline’s flagrant contract violation.
“The IAM will use every legal venue necessary to enforce this award,â€￾ said Roach.
 
Good for y'all! But now comes the ugly part about how U mgmnt. will handle this defeat!
 
Dizel8 said:
Good for y'all! But now comes the ugly part about how U mgmnt. will handle this defeat!
[post="186607"][/post]​

A win for IAM...but.....Like it matters either way the ruling went.... the co. is in BK - the IAM is toast :ph34r:
 
Well it means the company is liable for damages.

It means it is IAM Covered work, and give the IAM more leverage in the 1113e hearing. As the next buses are due in couple of days.

I guess 55 years of contract language does mean something and the is the biggest Arbitration Win for the IAM.
 
"The parties have been ordered to meet and discuss how affected employees will be made
whole for losses caused by the airline’s flagrant contract violation."


Would this be considered a pre or post petition obligation?
 
Congratulations to the Usairways mechanics and the IAM for your hard fought win. You defended your principle and stood up to corporate thievery. There not many on here that thought you had a chance and many will be bitter as you can tell already. You will get a lot of negative vibs but you know, whatever happens from here, what counts is you did the right thing and you won. You all should feel proud.


REUTERS REPORT


US Airways ordered to stop maintenance outsourcing
Fri Oct 1, 2004 04:24 PM ET
WASHINGTON, Oct 1 (Reuters) - Bankrupt US Airways (UAIRQ.OB: Quote, Profile, Research) has been ordered by an independent arbitration board to stop outsourcing certain maintenance work on Airbus (EAD.PA: Quote, Profile, Research) planes, the carrier's mechanics union said on Friday.
 
Yet another roll of the dice by U management that comes up SNAKE-EYES. The best thing the mech could do is get a big cash settlement and split it among the membership before the whole company goes bust. I'm sure Lakefield will slow roll it and in the end the IAM will be without jobs and the any settlement money will be long gone out the back door of CCY when it goes chapter 7.
 
IAM won this battle, but I believe they're losing the war, especially if there's no agreement between now and next week's hearing.

Also, the only thing this arbitration rules on is the contract that is about to be thrown out, barring a renegotiation.

Winglet said:
The best thing the mech could do is get a big cash settlement and split it among the membership before the whole company goes bust.

Uh, I don't know how to break this to you, but they U already went bust -- that's what bankruptcy is all about...

And the likelyhood of a cash settlement is zero. All U's cash is already spoken for. IAM will simply have to get in line behind a lot of other creditors.
 

Latest posts